Ad Categories: Real Estate

The Federal Reserve is widely expected to cut its rate again later today, but that doesn’t mean you should call your mortgage broker this afternoon in search of a lower payment. You should have called yesterday.

There is a widespread misconception that mortgage rates are directly connected to the Fed’s funds rate. In fact, the relationship is more along the lines of “Me and My Shadow”: the two tend to move approximately in step with one another, but neither one orders the other around.

“Mortgage bond markets meet every day, much more often than the Fed,” says Dan Green, a mortgage planner and loan officer at Mobium Mortgage here in Chicago and the author of themortgagereports.com. “Most of what the Fed is responding to has already been…

A few years back, when investing in residential real estate seemed like a fast money-maker, two guys went in together on three condos at the Metropolis, a terra cotta-clad building at State and Monroe Streets that was being converted from office and retail into 169 condos.

But when the condos were ready for their investors to take possession, the market had changed and the guys couldn’t sell their three units as fast as they had counted on; they ended up in foreclosure. This month, a real-estate agent working for the guys’ lenders sold one of those condos, a two-bedroom unit with parking included that the investors had originally bought for $310,000. The new sale price: $285,000. “That’s hands down a bargain,” says Peter Boland, the @properties agent who sold the condo for…